Cogent Communications (NASDAQ:CCOI) Stock Price Up 9.3% - Still a Buy?

Key Points

• Cogent Communications' stock price rose 9.3% recently, reaching $33.48 after closing at $30.62, amid an increase in trading volume.
• Analysts have decreased their price targets for Cogent Communications, with **a consensus price target of $70.00** and ratings varying from sell to buy.
• The company announced an increase in its quarterly dividend to **$1.015**, resulting in a 12.8% yield, and initiated a **$100 million stock repurchase plan**, indicating confidence in the stock's undervalued status.

Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Get Free Report)'s stock price rose 9.3% during mid-day trading on Monday . The company traded as high as $34.06 and last traded at $33.48. Approximately 663,591 shares traded hands during mid-day trading, an increase of 1% from the average daily volume of 655,339 shares. The stock had previously closed at $30.62.

Wall Street Analysts Forecast Growth

CCOI has been the topic of a number of recent analyst reports. Royal Bank Of Canada reissued a "sector perform" rating and issued a $40.00 price objective (down from $74.00) on shares of Cogent Communications in a research note on Friday. The Goldman Sachs Group decreased their target price on shares of Cogent Communications from $71.00 to $62.00 and set a "neutral" rating on the stock in a research note on Friday, May 9th. Finally, UBS Group decreased their target price on shares of Cogent Communications from $102.00 to $75.00 and set a "buy" rating on the stock in a research note on Friday, May 9th. Two research analysts have rated the stock with a sell rating, three have given a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $70.00.

Cogent Communications Trading Up 3.9%

The company has a market cap of $1.57 billion, a price-to-earnings ratio of -6.95 and a beta of 0.68. The business's fifty day moving average price is $47.74 and its 200 day moving average price is $57.76. The company has a debt-to-equity ratio of 49.06, a current ratio of 2.31 and a quick ratio of 2.31.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The technology company reported ($1.21) EPS for the quarter, missing analysts' consensus estimates of ($0.93) by ($0.28). The business had revenue of $246.25 million for the quarter, compared to analyst estimates of $247.79 million. Cogent Communications had a negative return on equity of 117.56% and a negative net margin of 21.57%. Cogent Communications's revenue for the quarter was down 5.4% on a year-over-year basis. During the same quarter last year, the firm posted ($0.68) EPS. Research analysts anticipate that Cogent Communications Holdings, Inc. will post -4.55 earnings per share for the current fiscal year.

Cogent Communications Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 5th. Investors of record on Thursday, August 21st will be issued a $1.015 dividend. The ex-dividend date is Thursday, August 21st. This is a positive change from Cogent Communications's previous quarterly dividend of $1.01. This represents a $4.06 annualized dividend and a yield of 12.8%. Cogent Communications's dividend payout ratio (DPR) is presently -89.43%.

Cogent Communications declared that its board has initiated a stock repurchase plan on Thursday, August 7th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the technology company to buy up to 4.6% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Cogent Communications

In other news, CFO Thaddeus Gerard Weed sold 4,900 shares of the company's stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $48.04, for a total transaction of $235,396.00. Following the transaction, the chief financial officer owned 98,000 shares in the company, valued at approximately $4,707,920. This represents a 4.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Dave Schaeffer sold 1,840,669 shares of the company's stock in a transaction dated Thursday, August 7th. The shares were sold at an average price of $32.60, for a total transaction of $60,005,809.40. Following the transaction, the chief executive officer owned 1,516,052 shares in the company, valued at $49,423,295.20. This represents a 54.84% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 2,286,169 shares of company stock worth $81,290,878. 11.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cogent Communications

Hedge funds and other institutional investors have recently made changes to their positions in the business. AlphaQuest LLC bought a new stake in shares of Cogent Communications during the first quarter worth about $36,000. Itau Unibanco Holding S.A. grew its position in Cogent Communications by 58.9% in the 4th quarter. Itau Unibanco Holding S.A. now owns 618 shares of the technology company's stock worth $48,000 after purchasing an additional 229 shares in the last quarter. Farther Finance Advisors LLC boosted its stake in Cogent Communications by 297.8% in the second quarter. Farther Finance Advisors LLC now owns 740 shares of the technology company's stock valued at $36,000 after acquiring an additional 554 shares during the last quarter. Resources Management Corp CT ADV purchased a new position in Cogent Communications in the first quarter valued at about $48,000. Finally, Atlantic Union Bankshares Corp purchased a new stake in shares of Cogent Communications during the 2nd quarter valued at approximately $40,000. 92.45% of the stock is owned by institutional investors.

Cogent Communications Company Profile

Cogent Communications Holdings, Inc, through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services in North America, Europe, Oceania, South America, and Africa. The company offers on-net Internet access and private network services to law firms, financial services firms, and advertising and marketing firms, as well as heath care providers, educational institutions and other professional services businesses, other Internet service providers, telephone companies, cable television companies, web hosting companies, media service providers, mobile phone operators, content delivery network companies, and commercial content and application service providers.

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